International Preferred Supplier Agreements are a lazy solution

Organisations that choose to implement international preferred supplier agreements need to ensure they are not designing a lazy solution. Whether driven out of procurement or HR, a PSA needs to deliver on the core need of attracting the best to their organisation in the most timely and cost effective manner taking into account all their locations and specialist sector needs.

There is a trend amongst the multi-national IT Vendors to use  centralised and technology  led processes to select regional and sometimes global providers. These are often pursued by the multi-national recruitment generalists whom tick off the location box and tolerate a price driven agreement. Fair enough and good luck to both parties.

But, my point about it potentially being a lazy solution is that the process often ignores the reality that the best recruitment solution for any multi-national also needs the following elements:

  • Flexibility
  • Local relevance
  • Specialist Sector coverage
  • Local knowledge and relationships

I have observed these IT multi-nationals signing up PSA’s even when their multi-national partners have little or no coverage in local markets covered by the PSA. Now that is a lazy solution and worst of all they are letting down their own local teams by hindering their access to the best people and ignoring well established mutually beneficial relationships.

Convenient yes, leveraged yes but are they smart?

Not in my opinion.

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